In fiscal year 2017-18, it handled about 9.2 million passengers making it the eighth-busiest airport in terms of passenger traffic in India. The airport serves as a focus city for GoAir. In 2015, the government started the procedure for the privatization of the airport. New Dholera International Airport is being developed due to expansion constraints at the current airport.

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The airport was set up in 1937, while international operations began on 26/01/1991. It was categorised as an International airport on 23 May 2000.[5] In 2010, the new terminal 2 was inaugurated for handling international passengers. A 18-foot-tall (5.5 m) statue of Sardar Vallabhbhai Patel was also inaugurated at the airport.[6][7] In 2015, the AAI invited proposals for privatisation of Ahmedabad, Chennai, Kolkata and Jaipur airports.[8]

A 700 kWp rooftop solar plant was commissioned at the airport on 21 March 2017.[9]

The airport currently consists of four terminals: domestic, international, an additional terminal for secondary traffic and a cargo terminal as well. The airport has 45 parking bays and both the international and domestic terminals have four aero-bridges each. The new terminal has been modelled based on Singapore Changi Airport.[10]

The new terminal has a half-kilometre-long moving walkway, which connects the two terminals.[11] Airports Authority of India (AAI) will construct a new technical block which will enhance the flight handling capacity and provide better control of flights.[12]

As part of the airport modernisation process, the AAI announced that it would construct a new air traffic control (ATC) building that would include a new airport tower 65 metres (213 ft) in height.[14]

In December 2018, a new Plaza Premium lounge was opened at Domestic Terminal 1 (near Gate 4 on first floor), which caters for Priority Pass and other select bank cards as well as some business class passengers based on airline flown.

T2 was inaugurated on 4 July 2010 and opened for use on 15 September 2010. The terminal won the award for the best Steel Structure at the 2009 edition of the National Structural Steel Design and Construction Awards.[15] The terminal has four aerobridges and 32 check-in counters. With the total floor area of approximately 41,000 sq. meters, this terminal will be able to accommodate around 1,600 passengers at any given time. In November 2018, a new Plaza Premium lounge was opened at International Departure area of Terminal 2, which caters for business class and first class passengers as well as passengers holding Priority Pass and other Bank card. The new 51,975-square-metre (559,450 sq ft) apron area can cater for the parking of nine A-321 and four ATR-72 type of aircraft.

The airport handled 51,637 tonnes of cargo, inclusive of gold and silver in 2013–14. Sixty percent of the cargo comes from domestic sources.[16] In 2009, 3,685 square metres (39,670 sq ft) of land was leased for a period of seven years out by the AAI to Gujarat Agro Industries Corporation to set up a center for perishable cargo. However, due to a government policy that prevented third-party operations at airports run by the AAI, the CPC was not in use until July 2014, when the minister of state for civil aviation announced that the government had issued a No Objection Certificate for commencement of operations.[17] In 2014, it was announced that the airport would be getting a dedicated cargo terminal which is expected to come up at Terminal 3.[16]

Indian Airlines Flight 113 operating from Mumbai to Ahmedabad crashed on its final approach to the airport on 19 October 1988, killing 130 people including all 6 crew members. The flight was cleared for a visual approach into a foggy airport, when it struck trees and a high-tension pylon at a distance of 5 km from Runway 23, before crashing into a field and bursting into flames.

Jet Airways Flight 2510, coming in from Indore collapsed on the runway while landing at the airport on 22 July 2010. There were 57 passengers and four crew members on board the ATR flight. Some passengers received minor injuries as the nose wheel reportedly collapsed due to a tyre burst.[24]